Should earthquake cover be removed to reduce the premium?
This is a material cost-versus-exposure decision and should not be based only on the percentage saving.
Removing cover may lower the premium but leave significant exposure. The actual saving, deductible and consequences depend on the policy, insurer and insured values; an online percentage is not an insurance offer.
Request written alternatives with and without cover, have exclusions explained by a licensed professional and present the choice to owners under the applicable decision process. Keep the decision and explanation.
Safety, insurance and privacy cannot be managed by an operational decision alone. The purpose, risk, qualified professional and relevant approval should be recorded, access to information restricted and the validity of inspections and cover checked.
Three points to check
- Written alternatives
- Deductible and exclusions explained
- Documented owners’ decision
Official and professional sources
These links are provided for further reading. Always check the authority’s website for the latest version and instructions.